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Chilftown’s park and recreation department is introducing a new summwr program for children in elementary school. Programming runs from 8:00 a.m. to 5:00 p.m. Monday through Friday. The proposed camp is 10 weeks long and is planned for 50 children. Fixed costs, which include equipment and facility costs, are estimated at $5,000 for 10 week. The facilities and equipment can accommodate up to 100 children per week, which is the maximum the department is willing to enroll in any given session. Three will be 5 camp counselors each week for the 50 children, at a cost of $2,000 per week for the 5 counselors. The department is comfortable with each counselor being responsible for 11 children. Any more than that an additional counselor will need to be hired. The camp will serve lunch and snacks on each weekday, at a cost of $15.
a) Identity the fixed, step and variable costs.
b) What would be the cost of the program for 50 children?
c) What would be the cost of the program for 75 children?
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